On April 24, 2021, the Washington State Legislature passed Senate Bill 5096. That bill enacts a 7 percent capital gains tax on some taxpayers’ long-term capital gains starting in 2022. Governor Inslee says he will sign the bill. Accordingly, individuals living or investing in Washington state need to learn how the law works. And also […]
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Covid-19 Relocations and Your Tax Return
If due to the Covid-19 pandemic, you moved out of your usual neighborhood or community, that move may impact your taxes. You may get some travel-related deductions in some special cases, for example. But you may also find yourself paying new state and local income taxes. Accordingly, you want to understand—at least in a general […]
Covid-19 Home Office Deductions
The Covid-19 pandemic pushed many to work from home. And that reality begs an obvious question: Do any of these people get a Covid-19 home office deduction? In many cases, the answer is “yes.” But the rules get tricky… The Home Office Deduction in a Nutshell Section 280A(c)(1) of the Internal Revenue Code creates the […]
Simple Trust Tax Planning Ideas Can Save Big Dollars
Many taxpayers understand—at least in a general way—how individual tax returns work. Someone earns or receives income. The taxpayer gets some deductions. Often including a big “standard deduction” that means someone doesn’t pay income taxes on the first $12,000 or $24,000 of income. And then the tax rates paid? A familiar set of percentages. Often […]
How Taxes Work for PPP Loans
Sometime in the next few days, the Paycheck Protection Program, or PPP, will restart. We’re just waiting now for the President to sign the bill the House and Senate already passed. For the millions of small businesses who have borrowed PPP money, the new law includes a windfall. The PPP loan money now counts as […]
Avoiding Taxes on PPP Loan Forgiveness
How a PPP borrower fills out the 3508 forgiveness application matters for taxes.